
Industry players within the construction industry have expressed shock at how Water Utilities Corporation (WUC) disregarded their own procurement rules and regulations, and even national policies when dealing with Khato Civils/South Zambezi Evolution Engineers JV for the construction of the 100km long transmission pipeline and associated works from Masama Wellfield to Mmamashia water treatment plant. On the 17th of June this year, Water Utilities Corporation (WUC) Chief Executive Officer Gaselemogwe Senai wrote to Permanent Secretary in the Ministry of Land Management, Water and Sanitation Services requesting for direct payment of suppliers for the contract. WUC requested MLWS to pay directly a whopping P214 million to three South African companies engaged by Khato Civils/South Zambezi Engineers JV. According to the letter ArcelorMittal South Africa is to be paid P127 million directly by WUC to supply steel sheets to be used in the manufacturing of the steel pipes, Africa Pipe Industries to be paid P77 million for the supply of pipes and socketed joints. Drehmo Africa is to supply, deliver and commission valves for over 10 million. WUC will directly pay these suppliers as upfront despite not being contracted to them. Contract specialists have raised questions on not only the blatant disregard…